Want to create a feasible pool of savings? Want to multiply the money you saved?
Most of the people thinks that savings in bank accounts are the most sustainable way to make saving and multiply money but no, it only creates the fix interest income. Earnings are less because risks are also less. So, we can say that savings in bank account is the way of keeping the money safe not multiplying or investing!
Acknowledge the meaning of stock!
Stock is a share of company owned by shareholders. These stocks are bought and sold in the share market. Stock market means the collection of buying, selling and allotment of stock of publicly detained companies. Stock market is the effortless replacement for the beginners as they can trade from stock exchange platforms.
Necessary documents while investing in stocks
Aadhaar Card
PAN Card
Proof of residency
Passport size photographs
Broker approved documents
Proof f source of income
Cancelled Cheque of bank
Factors to recognize for winning investments
Ø Know the supply and demand
Ø Invest in leading companies of their industry
Ø Changes in company grows the value of stocks
Ø Regular growth in continuous 3 years
Ø Be aware of market trends
Ø Expansion Value
Ø Economic strength of company
Step wise procedure of investing in Stocks
Step1: Understand your Investment necessity.
Step2: Examine the investment strategies
Step3: Invest at right time
Step4: Buy / Sell stocks online
Step5: Observe your investment
Advantages of different type of stocks
1. Advantages of Common Stocks
Liquidity
Capital Growth
Premium income
Voting benefit
Beneficial tax treatment
Invest in companies with low liabilities
Higher earning potential
Easy purchase on virtually trading platform
Get ahead of expansion problem
Advantage of growing economy
Buy and sell all around the globe
Variety of ways to trade
2. Advantages of Preferred Stocks
Reliable income
Higher Income
Foremost Safety
Return of principal
Variety of Options
Dividend safety
Higher dividends
Lower risks
No priority status in bankruptcy
Ability to convert in Common stocks
Disadvantages of different type of stocks
1. Disadvantages of Common Stocks
Pays in last during a company liquidation
Less control over investment
Can lose considerable value in a day
Companies do not pay any dividends
Have to steer numerous stocks
Take time to generate gains
Can be emotional roller-coaster
High level of professional competition
2. Disadvantages of Preferred Stocks
Limited Upside Potential
Sensitivity in interest rate
No growth of dividends
Risk in dividend income
Foremost risk
Worst features of stocks and bonds
Wrapping up
If you are here then surely you have been actively looking at investing in stock markets and expanding your finance because with that you can stay ahead of expansion. Apart from that, you will have the independence to select which companies to invest in, and also it will serve as a much-necessary liquidity bolster.
It is suggestion from us to not to do invest in stock on a whim. For a beginner, that’s the most dominant thing to understand is that this is not a wagering industry; it works on particular principles that need planned thinking and extensive examination.
Beginners will surely perceive the excitement when they will buy stocks and sell them for increased price. It’s not effortless to understand all the directives, but they can do it. The main thing is to start. They can make minimum investments at first, and they will grow as they acquire more experience.
We are wrapping up the blog with the hope that all these information will help and guide you. If you want to know more in depth about stock market you can read our previous blogs or can get in touch with our experts of stock market that will surely help you in expending your financial portfolio